TMI BlogGST on renting of property to 12AAA registerd educational InstitutionX X X X Extracts X X X X X X X X Extracts X X X X ..... I have my property rented to an govt approved maritime Insititute engaged in Govt approved courses mandatory by the Govt registered under charitable trust and having IT exmption 12AAA. will educational Institution pay GST to me for paying to govt. . it was not paying service tax till october 2016. in ocotber 2016 i started applying service tax but now I receive a claim from educational ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institution saying they were/ are not liable to pay either service tax nor GST. please clarify thanks and Brgds Capt.Beg - Reply By KASTURI SETHI - The Reply = No exemption available to you for this service. - Reply By KASTURI SETHI - The Reply = You will have to pay GST from your own pocket by treating amount of rent as cum -tax taxable value - Reply By KASTURI SETHI - The Reply = If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... you are registered as charitable under Income Tax Act but engaged in commercial activity you are out of definition of charitable. Hence not eligible for exemption. - Reply By Ganeshan Kalyani - The Reply = I agree with Sri Kasturi Sir. - Reply By KASTURI SETHI - The Reply = Dear Querist, Your chapter is not closed here. Definitions of Charitable' and'Commercial Activity' under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act is not applicable to GST Acts. Income Tax is direct tax and GST is indirect tax. Both are not linked for the purpose of l applicable of GST. In pre-GST era, both these definitions were different in both Acts. You must go through this circular: GST on Charitable and Religious Trusts - Reply By KASTURI SETHI - The Reply = Definition of commercial activity pertai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning to the period prior to 1.7.12 which is relevant as per statute : Relevant para of Circular No. 107/1/2009-S.T., dated 28-1-2009 F.No. 137/23/2007-CX.4 2. Commercial Nature of Institute The first issue arises from the very name i.e. Commercial training or coaching center . Many service providers argue that the word commercial appearing in the aforementioned phrase, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uggests that to fall under this definition, the establishment or the institute must be commercial (i.e. having profit motive) in nature. It is argued that institutes which are run by charitable trusts or on no-profit basis would not fall within the phrase commercial training or coaching center and none of their activities would fall under the taxable service. This argument is clearly erroneous. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As the phrase commercial training or coaching center has been defined in a statute, there is no scope to add or delete words while interpreting the same. The definition commercial training or coaching center has no mention that such institute must have commercial (i.e. profit making) intent or motive. Therefore, there is no reason to give a restricted meaning to the phrase. Secondly, service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax, unlike direct taxes, is chargeable on the gross amount received towards the service charges, irrespective of whether the venture is profit making, loss making or charity oriented in its motive or its outcome. The word Commercial used in the phrase is with reference to the activity of training or coaching and not to the nature or activity of the institute providing the training or coaching. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, services provided by all institutes or establishments, which fulfills the requirements of definition, are leviable to service tax . - GST on renting of property to 12AAA registerd educational Institution - Query Started By: - Noor Beg Dated:- 5-11-2017 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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